Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers. Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete.

What does structural unemployment mean?

Structural unemployment is a category of unemployment caused by differences between the skills possessed by the unemployed population and the jobs available in the market.

What is an example of structurally unemployed?

Farmers in emerging market economies are another example of structural unemployment. Free trade allowed global food corporations access to their markets. That put small-scale farmers out of business. They couldn't compete with the lower prices of global firms.